As per Canada’s Economic Action Plan, you can claim a tax credit if buying home for the first time. First-Time Home Buyers’ Tax Credit can help you arranging the down payment by covering the costs of mortgage closing, inspection, legal expenses and land transfer taxes.
According to the current taxation rates, a first time home buyer can claim a rebate of $750. Both, the home and its buyer must qualify the requirements to avail this rebate, while the credit must be claimed within one year of purchase.
To claim the first time buyers’ tax credit, the home you are purchasing must qualify the following requirements.
- It should be new or existing constructed home within Canada
- It should be a single, semi, townhouse, apartment or condo
- It should be a share in Co-Operative Housing Corporation that gives home possession
- The buyers must be intended to occupy the home within one year of purchase
To claim the first time buyers’ tax credit, the person must qualify the following requirements.
- The claimer or the spouse must purchase a home qualifying the requirements stated above
- The person claiming the tax credit must register the new home in his/her or the spouse’s name
- The person claiming tax credit must have owned or lived in the home owned by spouse in the previous four years.
- The documentary evidence proving the purchase of home must be provided
- The claim of both the spouse collectively, cannot exceed the standard amount of $750
Home Buyers’ Tax Credit for Disabled Persons
Disabled persons need not to be the first time home buyers to claim a tax credit; as such people are allowed to claim a disability amount on their tax return. However, it can only be claimed if the purchased home is appropriate for disabled persons to live.